The restaurant industry is nothing if not changeable. There are, however, some trending foods that have remained relatively persistent for more than a decade. Here, we’re focusing on two that are genuinely making a far-reaching name for themselves—Bonchon and Toastique. These restaurants exemplify what can be accomplished with focused intention and the right ingredients at the right time.
Bonchon
A recent Savorfm and Fast Casual Nation podcast featured an interview with Bonchon CEO Suzie Tsai. The title, “Korean Food Goes Viral: How One CEO is Conquering Small-Town America,” certainly caught my attention, demonstrating the power of words and incredible marketing. Here, we’ll explore what Tsai had to say about their explosive growth and how Korean fried chicken is gaining popularity in Middle America.
Bonchon has recently opened 150 units in the U.S., with plans to expand to 500 in areas that aren’t always considered culturally diverse. Yet, Middle America is becoming their priority market. Why?
Many restaurateurs with global or Asian flavors have shied away from this market segment, believing that this part of the country may have less exposure to international cuisines, preferring traditional or familiar foods.
Tsai finds, however, that Korean food is trending – particularly among Gen Z. By heading to small-town America and the Midwest, they are tapping into an underserved market. With the growing appreciation for diverse and authentic flavors, the brand is answering this increasing demand in areas where options may be limited.
Apparently, it’s working, with 350 planned U.S. locations and a goal of 1,000 globally. They recently opened another one in Salt Lake City – a place they find wants the option of accessible, good, and authentic Asian food.
Key markets include Arkansas and Iowa, where they bring Korean fried chicken to a wider audience in towns with less existing competition.
Different Franchise Models
Part of their success lies in their adaptable franchise model and various restaurant formats, making it easier to penetrate different markets.
The smallest models are the remote ghost kitchens. They are very selective and mindful of where these are located, as they require brand awareness.
Next is the pick-up and delivery model. Many of these locations have no sit-down area, or if they do, it is minimal. This strategy helps lower their footprint while reducing labor costs. Today, the brand is looking at properties ranging from 1,800 to 2,200 square feet. Tsai notes the need for a large dining area has diminished as carryout and delivery become more prominent.
Interestingly, this brand initially operated as a full-service model, adapting as consumers’ dining preferences evolved. They still, however, have traditional dine-in restaurants and note that much of Korean food is meant to be consumed with soju or beer, which complement Korean fried chicken and are offered at many of their locations.
They are also focused on opening units by colleges, as a major market for them is the younger generations. Tsai noted that they have also opened in hotels, with a recent all-day Bonchon opening in a hotel in Bloomington, IL.
Addressing the Benefits of Kiosks
Bonchon is also updating its tech stack, adding kiosks, which they see as a highly effective tool. All new restaurants have at least two kiosks. Tsai notes that this technology gives their customers time to study the menu before making a decision. Kiosks also have higher check averages than cashiers. At some point, they believe they will even gain the ability to check IDs, enabling guests to order alcoholic beverages directly.
Toastique
Do you love toast? You’re not alone, and the founder of Toastique, Brianna Keefe, definitely believes in the power of toast. Toastique was born out of a passion for creating healthy snacks that would sustain Keefe through rigorous athletic training as a collegiate D1 athlete. Today, it serves customized toast piled high with organic, nutritious ingredients, beautifully presented.
Founded in 2018, their franchising model started up in 2020. This Washington-based gourmet toast concept and juice bar entered the market at just the right time, as the fast-casual health food trend took hold.
What else have they done right? Instagram-worthy gourmet toast options definitely help. In 2023, Keefe shared with NRN one of the keys to their success. “We get asked a lot who our competitors are, but I don’t think we really have any competitors. Maybe toast is trendy, but no one ever puts their full focus on it…It’s not just a side piece of toast, it’s a whole meal that looks beautiful and is fresh, which is not what people are used to.”
According to NRN, they currently have over 40 units and have recently opened their first location in New York City.
So, what do these two success stories tell us? Passion may be the key to mastery.
